Top Ten Stocks for Long-Term Investment

The Indian stock market has faced a persistent downward trend over the last six months, with key indices experiencing a sharp decline from their record highs. Despite the correction, experts believe this presents a golden opportunity for long-term investors to accumulate quality stocks at fair valuations. Market analysts have identified Bharat Electronics Limited (BEL), Reliance Industries, SJVN, and other fundamentally strong stocks as potential wealth creators for long-term investors.

Indian Stock Market Faces Correction as Indices Dip from Record Highs

The Indian stock market has been in a ‘sell on rise’ phase for the past six months, with key indices witnessing a substantial decline from their peak levels:

• Nifty 50 Index: Peaked at 26,277 on September 26, 2024, and dropped to 22,397 as of March 14, 2025—a decline of 3,880 points (14.75%).
• BSE Sensex: Reached a record high of 85,978 on September 26, 2024, but closed at 73,828 last week—losing 12,150 points (14.15%).
• Bank Nifty Index: Plummeted from its lifetime high of 54,467 to 48,060, marking a drop of 6,407 points (11.75%).
• BSE Small-cap Index: Suffered a 24% crash from its peak.
• S&P BSE Mid-cap Index: Declined by 21.40% from its highest level.

Despite this correction, market experts believe that the decline has opened up opportunities for long-term investors to accumulate stocks at attractive valuations.

Market Outlook: Experts Highlight Resilience Amid Global Challenges

Stock market experts emphasize that, despite weakness in global markets and the US stock market downturn, the Indian market has shown resilience.

Seema Srivastava, Senior Research Analyst at SMC Global Securities, highlighted that market fluctuations were driven by a combination of global economic trends, US trade policy concerns, and sector-specific movements.

She explained,
“Positive global cues, strong PMI data, and rallies in metals, PSU banks, and IT stocks supported a mid-week recovery. However, selling pressure in financial stocks due to renewed tariff concerns erased the gains. Despite external challenges, the market remains resilient, with investors closely watching global trade policies and domestic economic data.”

Stock Market Projections: Key Levels to Watch in the Coming Week

SBI Securities analysts remain cautiously optimistic about the market’s medium-to-long-term outlook despite near-term volatility.

• Resistance Levels: Nifty 50 is expected to face an immediate hurdle at 22,670-22,700, where key technical indicators like the 20-day EMA and the 38.2% Fibonacci retracement level are placed. If Nifty surpasses this range, it could advance toward 23,000-23,300 in the upcoming sessions.
• Support Levels: On the downside, 22,300-22,200 is expected to provide strong support in case of further declines.

SBI Securities also noted that liquidity inflows could improve in the coming weeks due to macroeconomic factors:

• US Inflation Data: The US inflation rate rose 2.8% YoY and 0.2% MoM, lower than the expected 2.9% YoY and 0.3% MoM.
• Indian CPI Data: India’s consumer price inflation (CPI) fell to a 7-month low of 3.6% in February 2025, compared to expectations of 4.0%, largely driven by lower food prices.
• IIP Growth: India’s Index of Industrial Production (IIP) reached an 8-month high of 5.0% in January 2025, up from 3.5% in December 2024.

SBI Securities expects the RBI to consider further rate cuts in its April policy meeting, which could boost market sentiment.

Top 10 Stocks to Buy for Long-Term Investment

Market analysts recommend investing in fundamentally strong stocks at fair valuations for long-term wealth creation.

According to Seema Srivastava of SMC Global Securities, investors should focus on quality stocks with strong fundamentals amid ongoing volatility. She highlighted the following 10 stocks for long-term investment:

1. Bharat Electronics Limited (BEL)

• A leading defense electronics company with strong order book visibility.
• Key beneficiary of India’s defense modernization push.
• Consistent revenue and profit growth over the years.

2. Reliance Industries Limited (RIL)

• Strong presence in refining, telecom (Jio), and retail.
• Benefiting from growing digital consumption in India.
• Robust financials and expansion in green energy initiatives.

3. SJVN Limited

• A public sector hydropower company with aggressive renewable energy expansion.
• Government-backed growth plans in solar and wind power projects.

4. Axis Bank

• One of India’s largest private sector banks with improving asset quality.
• Benefiting from economic recovery and rising loan demand.

5. Bank of Baroda

• A leading PSU bank with a strong balance sheet and improved profitability.
• Gaining from government initiatives for financial inclusion and credit growth.

6. JSW Steel

• A key player in India’s growing steel sector, benefiting from infrastructure expansion.
• Strong export demand and capacity expansion driving future earnings.

7. Lemon Tree Hotels Limited

• A leading budget hotel chain in India, benefiting from rising domestic tourism.
• Strong growth in premium hotel segments and business travel demand.

8. Sapphire Foods India Limited

• Franchisee of KFC and Pizza Hut, benefiting from India’s fast-growing QSR (Quick Service Restaurant) market.
• Expanding store network and digital transformation driving growth.

9. UPL Limited

• A global agrochemical company with strong market share in pesticides and fertilizers.
• Increasing focus on sustainable agricultural solutions.

10. KEC International

• A leading infrastructure EPC (Engineering, Procurement, and Construction) company.
• Strong execution capabilities in power transmission, railways, and civil projects.

Macroeconomic Events to Watch in the Coming Week

The upcoming week will be critical for the stock market, as key macroeconomic events could influence investor sentiment:

• US Federal Reserve (FOMC) Meeting: Decision on interest rates and Fed’s commentary on inflation and economic growth.
• India’s Wholesale Price Inflation (WPI) Data for February 2025.
• Impact of Former US President Donald Trump’s tariff policies on global trade.

Market experts suggest investors should remain cautious yet optimistic, as the recent valuation correction presents a great opportunity for long-term investors to accumulate quality stocks at attractive prices.